With the Federal Reserve attempting to aggressively control inflation, the long-term average mortgage rate is at the highest it’s been since the recession of 2008. Naturally, the rising rates are leading to a decline in home prices. In the San Francisco Bay Area, on average, prices have been declining by 3% from May to August. The drop is even more aggressive in the Bay Area’s most populated city, San Jose, which has experienced a decline of 4% in August 2022 compared to last year. Nonetheless, the cost of homeownership is as high as ever as the declining home prices are “nowhere near enough to offset extra borrowing costs.” Owners trying to sell their homes are not at an advantage either – because they might not receive their home’s true worth as the real estate market begins to cool. This is why it’s a perfect time to tackle a home renovation project!
The home remodeling industry is set to peak in 2022, as people see increased opportunities for remodeling their current residences. According to Zonda’s Residential Remodeling Index (RRI), remodeling activity has increased 12.4% year over year. In addition, the remodeling 2022 Cost vs Value report demonstrates that midrange kitchen and bathroom remodel projects in San Jose are estimated to recoup 64.3% and 69.3% of total costs, respectively.
Clearly, it’s a great time to embark on a renovation project in San Jose, especially because most homeowners were able to lock in mortgage rates when the cost of borrowing was at historically low levels. History demonstrates that the real estate market always recovers from down cycles and continues to appreciate in the long term. Considering the price disparity between renovated and unrenovated homes, homeowners will be able to sell homes at a premium when the market recovers.
2022 housing trends in San Jose demonstrate that homes have been remaining on the market for an average of 29 days, compared to only 11 days last year. So, even for homeowners who wish to sell their homes when prices are on a steep decline, renovation projects speed up that process.
While estimating the return on investment is always a significant consideration before renovating a home, complete home remodeling projects are also a fantastic way for homeowners to add increased functionality and improve the home’s aesthetic. According to the house method, a driving reason homeowners choose to renovate their home is to “increase the enjoyment of their living space. Upgrading, modernizing, and safety were also key contributing factors”. In fact, 93% of the homeowners surveyed “claimed that the renovations were worth the time, money, and any temporary discomfort caused.”
Evidently, a renovation project has a handful of benefits, especially in current market conditions. This is why choosing the most skilled and professional home builders, like Wise Builders, is pivotal for a smooth renovation process. A general contractor is responsible for planning all construction activities and completing the project within an established timeframe and budget. Therefore, working with a remodeler with excellent references and qualifications is highly recommended… Choose wisely.
Company Name: Wise Builders
Contact Person: Nathan Weizmann
Email: Send Email
Address:2355 Paragon Dr. Ste E.
City: San Jose
State: CA 95131
Country: United States